[DTC POD Ep. 85] – How offering free shipping affected Heartland Bread's business (marketing breakdown)

March 1, 2022
1
 MIN
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  1. “To address operating constraints created by free shipping, consider adjusting your offer to create efficiency for your business.” @jadesai94 #DTCPOD
  2. “Sometimes you’ll see AOV dip with free shipping but that’s usually because of price points when consumers earn free shipping.” @jadesai94 #DTCPOD
  3. “Even if your AOV falls, make sure to pay attention to other metrics like conversion rate to see the bigger picture.” @jadesai94 #DTCPOD
  4. “Creating FOMO in regards to your shipping can be a great way to boost orders on certain days.” @jadesai94 #DTCPOD
  5. “Don't let pushback from one-time purchasers impact your pricing strategy. Focus on building lifetime value and super fans.” @jadesai94 #DTCPOD

We Speak About:

  • [01:20] Heartland Bread’s price change to fit in free shipping
  • [02:20] How free shipping affect Heartland Bread’s conversion rate
  • [03:30] Impact of free shipping on order size
  • [05:05] Free shipping effect on daily money intake
  • [05:55] How free shipping affected Heartland Bread’s daily money intake
  • [06:45] Heartland Bread’s decision to change shipping process
  • [08:30] Customer reaction to price strategy change
  • [09:55] How to A/B price strategy and free shipping changes

Is free shipping something to consider for your brand?

Free shipping. Everybody loves it. So why is it that some brands choose to pass shipping costs to customers?

Is it because of logistics issues? Is something else?

In this episode of the DTC POD, we dive into Heartland Bread’s decision to change its pricing strategy and offer free shipping for its customers.

Based on the price of your product, free shipping is something you may or may not want to consider.

If your product is less expensive, rolling shipping costs into the product could make your product too expensive for customers. If your product is more expensive, free shipping might be a no brainer.

Stay tuned as we discuss Heartland Bread’s previous pricing strategy, their new strategy with free shipping, and the effect it had on their business.

If you’d like to learn more about Trend and our influencer marketing platform for influencers and brands visit trend.io. You can also follow us for tips on growing your following and running successful campaigns on Instagram and LinkedIn.

Mentioned Links:

More on Heartland Bread’s free shipping strategy: https://sendeats.com/blog/free-shipping/

Episode Transcript & Castmagic Chat

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Ramon Berrios
Founder and CEO at Trend
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Ramon has Co-Founded Trend. It is a curated marketplace of creators and brands. We help brands source high quality custom content. We love working with new, innovative companies that are changing the game.

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Blaine
Co-Founded Seated,COO at Omnipanel
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Blaine Bolus is the Co-Founder of OmniPanel, the first software platform connecting CX & Internal teams.OmniPanel, backed by top Silicon Valley VCs, is building software infrastructure that powers cross-functional work, in an industry projected to be a $641 Billion Market in 2022.